What Happened?
A number of stocks jumped in the afternoon session after crude oil pushed back above $100 a barrel, with Brent near $111 and WTI close to $108.
The move followed fresh comments from President Trump that "the Clock is Ticking" for Iran, a drone attack on the UAE's Barakah nuclear plant over the weekend, and the continued closure of the Strait of Hormuz, a chokepoint that normally carries about 20% of the world's oil. The Energy Select Sector SPDR Fund (XLE) gained roughly 2.4%, with Exxon, Chevron and ConocoPhillips leading.
Supply data added to the squeeze: U.S. crude inventories fell 4.3 million barrels in early May, dropping below the five-year average, while natural gas futures jumped. The risk for investors remained symmetrical as any de-escalation could reverse the move just as quickly.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Mixed or Offshore Upstream E&P company Seadrill (NYSE: SDRL) jumped 3%. Is now the time to buy Seadrill? Access our full analysis report here, it’s free.
- Oilfield Services company ProPetro (NYSE: PUMP) jumped 2.6%. Is now the time to buy ProPetro? Access our full analysis report here, it’s free.
- Oilfield Services company NOV (NYSE: NOV) jumped 3.1%. Is now the time to buy NOV? Access our full analysis report here, it’s free.
- Infrastructure company Calumet (NASDAQ: CLMT) jumped 3.2%. Is now the time to buy Calumet? Access our full analysis report here, it’s free.
Zooming In On Calumet (CLMT)
Calumet’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 24 days ago when the stock dropped 4.8% on the news that investment bank Goldman Sachs downgraded the company's stock to Neutral from Buy.
This change in rating from a major financial firm signaled a less optimistic short-term outlook for the stock, which likely prompted some investors to sell their shares. A downgrade often suggests that an analyst believes the stock's potential for future growth is more limited compared to their previous assessment. In a somewhat mixed message, while the rating was lowered, Goldman Sachs also adjusted its price target for Calumet, raising it to $36 from a previous $34.
Calumet is up 65.8% since the beginning of the year, but at $32.42 per share, it is still trading 10% below its 52-week high of $36.02 from May 2026. Investors who bought $1,000 worth of Calumet’s shares 5 years ago would now be looking at an investment worth $5,542.
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